Saturday, 21 July 2018

Information and commentary for the small business banking industry

Show your small business customers how to boost their capacity

05 Jul

More and more these days, customers are turning to their banks for financial advice – not just how much they can borrow or what lending packages are available, but how they can grow their business and increase their profits.

If you’ve got small business customers whose growth is being hampered because they don’t have the capacity to meet demand, one of the best ways you can help them is by giving them tips on how to boost that capacity. From speeding up production or improving systems and processes, a boost in capacity is almost always going to see them increase their profit margins.

Key tips for boosting capacity

So what you’re looking to do is show your small business customers how they can improve their ability to do more internally. These options don’t necessarily include borrowing more money – there are ways they can work ‘smarter’ to boost their capacity:

  • Improving skills – encourage them to tap into the expertise of others. For many small business owners, that area is often the financial side of the business. As their business banking partner, you can spend some time helping them hone their financial abilities.
  • Streamline systems and processes – ironing out small inefficiencies can lead to larger gains, such as properly delegating work, using technology, ditching un-necessary tasks and making sure staff are working efficiently.
  • Reviewing equipment – do they own a lot of equipment they hardly use? Would it be better to sell it, then lease when it’s needed? Or on the flip side of that coin, would they benefit from purchasing the equipment they need, as demand justifies it? It can be expensive, but they’ll gain a competitive advantage from getting their products to market quicker than their competition.
  • Reducing costs – it’s always a good idea to look at fixed costs and see where savings could be made, such as re-negotiating deals with suppliers, and looking around for other energy and internet options.
  • Review staff – the right employees are critical for business growth. It could be that hiring staff with specialized knowledge and experience is justified, especially if it boosts their competitive advantage.

It’s also a good idea to review what capital they have available. There’s not much point in having it sitting there doing nothing – it’s much better if they invest it back into the business so that it’s working for them. Or you can walk them through your business lending packages – it could be that a new loan to boost their capacity will pay off in terms of growth and profits.

We’ve got some great content around boosting the capacity of small businesses, so get in touch with us to see what content we’ve got that would help your customers.


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Glen Senior
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.

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